China Net March 11 reports, the largest denomination of RMB is too small, 100 yuan notes can no longer meet the rapid growth of economy. CPPCC national Committee member, Chairman of the Board at Hong Kong Yu Zhen Holding Group Co. Ltd. Chen Zhendong (陈振东) submitted a proposal at the CPPCC National Committee yesterday that the time for issuing 500 yuan RMB notes has come.
The rumor of 500 yuan design which has been on the Internet since 2007
Currently, the largest denomination of China’s yuan is too small; one hundred yuan has been issued for 23 years which is difficult to adapt to the economic development needs.
“Cash denominations are too small for the significant increasing cash transactions in the society, which is a waste of time for the financial institution and the people.” Chen Zhendong used bank Automatic Teller Machine (ATM) as an example. “The machine cash box normally holds hundreds of the largest denomination of the notes, during a normal business day on average there are 50 to 60 withdrawals, and an ATM can only supply money for half of a day. If the bank ATM needs to be refilled twice a day, it potentially increases human and material resources.”
He said issuing 500 yuan large note not only can save time on the socioeconomic operation, but also can reduce the production costs on printing currency.
Chen Zhendong made clear that the size of the denomination in currency is not necessarily connected with inflation. According to China’s economic growth, residences’ income, cost of living and to compare with developed counties’ large denomination bank notes, China can first issue RMB 500 yuan face value notes, then issue 1,000 yuan face value notes accordingly.
“When launching the 500 yuan large denomination notes, the volume can be properly controlled, first start with the southeast coastal areas then circulate into the whole country.” Chen Zhendong said.
The current largest bill: 100 Yuan
Netizen’s comments on Netease:
网易广西玉林网友 ip：218.21.*.*： 2010-03-12 18:39:14 发表
Wa, one month only getting two pieces of paper, getting one counterfeit means working a month for nothing, the other one is for living cost.
网易河南郑州网友 ip：202.196.*.*： 2010-03-12 18:14:17 发表
Really stupid, anybody can be a member of the national Committee?
网易中国网友 ip：218.207.*.*： 2010-03-12 18:38:19 发表
The beginning of the inflation, no matter how you say it, it won’t do any good.
网易湖北十堰网友 ip：119.101.*.*： 2010-03-12 16:00:48 发表
I think we should issue 250 yuan face value notes. If I take couple of 500 yuan bills to go out, I would be robbed! How can he think of such thing? If human lives are not guaranteed, then there are no environmental issues. It reminded me of T. V. Soong era driving a car with a bag of money in order to buy a box of matches, if we go with what he proposed, later we need a truck of money to buy an ox. This pig is really awesome…
网易火星网友 ip：unknown： 2010-03-12 18:57:42 发表
Inflation starts exactly like this, when large bills are issued, smaller face valued bills will slowly become worthless ~ absolutely oppose the issuing!
网易河南郑州网友 ip：123.15.*.*： 2010-03-12 18:41:09 发表
This guy said saving cost, it is really saving labor costs, but China has so many people, do not need to save, more saving means unemployment! Typical capitalists proposal.
Members always propose these stupid suggestions, but the real issues no one dares to mention, no one is willing to mention.
网易美国网友 ip：192.9.*.*： 2010-03-12 18:52:32 发表
Really there is no need, people use credit cards more now days.
网易北京网友 [haoke]： 2010-03-12 21:18:53 发表
Firmly opposed the 500 yuan large note for the following reasons: first, fear of robbery, with large valued bills it is easier to lead to life-threatening situations; second is not convenient for people getting their wages, many people can only receive two 500 yuan bills a month; third is putting large valued money at home is unsafe, once it is stolen, lost is too much; fourth is inconvenient for the public servants at all levels when consuming them, it is too much trouble for the ladies (Xiao Jie) to give them changes.